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With the arrival of 2023, China's retail market seems to have turned into a discount battlefield overnight。In this highly sought-after field of capital, discount stores have not only become the new favorite of consumers, but also swept the commercial streets of counties and towns at an almost "aggressive" speed.
These once peaceful shopping worlds are now occupied by one store after another under the banner of discounts, from snacks are very busy to Zhao Yiming snacksThey are like an army of "assassins" who have broken into the business world, ruthlessly rewriting the fate of traditional retail.
In this discount revolution, the role of capital cannot be underestimated. Discount stores with loud names such as Good Sale, Hi Special Sale, and Prosperity Bazaar have blossomed everywhere like sparks with the help of capital
These stores are not just places to sell goods, they are a new consumer experience, a declaration of life attitude, and thoroughly stimulate consumers' desire for "good quality and low price". The success of the discount store seems to tell people that a high quality of life does not have to be expensive.
But behind this prosperity, there is a conflict that cannot be ignored。Retail giants are also starting to jump into this discount warHema and Yonghui are namesWell-known companies in the industry have also announced comprehensive discounts, and even added ** discount areas in stores.
This series of actions is undoubtedly declaring war on the traditional retail market, indicating that a more intense market reshaping is about to be staged.
And in the midst of this discount craze, a store called Biyide unexpectedly became the focus. Why did this brand, known as the "paradise of the poor", close its doors on the cusp?
How did this former market star lose to the cruel competition in the market with the blessing of capital?These questions, like a tidal wave, quietly rush to everyone who pays attention to the changes in the retail industry.
Just as people cheered the rise of discount stores, the collapse of Biyide threw a hammerLet all the hustle and bustle be silenced for a while. Its story is not only the rise and fall of a brand, but also a microcosm of the transformation of the entire retail market.
Behind the glitz and glitz of China's discount retail market, Biyide used to be the brightest star. This brand with German roots, once with its unique business model, has steadily developed in the Chinese market, and its stores are all over the bustling streets and quiet alleys, and countless followers flock to it just for the legendary "German quality, civilian**".
Biyide has broken the traditional retail model and controlled the cost to the extreme by purchasing directly from manufacturers and reducing intermediate links。It has a wide range of products, from kitchen supplies to seasonal clothing, from daily groceries to electronic accessories, each of which has an irresistible advantage.
In the eyes of consumers, Biyide has become synonymous with "value for money", almost every shopper can find surprises here, it is like a treasure island, full of unknowns and expectations
However, the unpredictable market always likes to surprise people. Just when Biyide was in full swing, a series of marketing strategies became the focus of controversy. In order to compete in the market, Biyide has launched a bold "".Low price guaranteeThe plan promises that consumers will return the difference in price if they find the same product at a lower price in any other store.
Although this strategy has attracted a large number of sensitive consumers for a while, it has also frequently triggered ** wars because of its radicalness, compressing the profit margins of the industry and even angering competitors.
Biyide's business model and marketing strategy have also become its double-edged sword. On the one hand, it has established an unshakable position in the hearts of consumers, and on the other hand, its radicality has gradually stretched itself in the fierce market competition.
And when the news broke that Biyide would close all stores, the news was like a bolt from the blue, causing an uproar on social **. Loyal customers can't accept this former "money-saving expert" to come to an end, and many people have launched a ** campaign to keep Biyide on the Internet, and some consumers even spontaneously held a "Save Biyide" rally in front of the store.
The fall of Biyide is not only the disappearance of a brand, but also a profound change in the discount retail industry. Its story tells people that even the brightest stars can't resist the torrent of market changes.
The story of Biyid is like an elaborate commercial stage play, and the audience is still immersed in its low-cost magic, but they do not expect that unspeakable challenges have quietly accumulated behind the scenes。Its minimalist store design may be fashionable in Germany, but in the Chinese market, which loves the hustle and bustle, it seems out of place.
Like a plainly dressed dancer, the Beyde's store is too modest to attract customers who are looking for a shopping experience and enjoy the shopping process.
More critically,Biyide appears to have failed to accurately capture the changing needs of Chinese consumers. In the West, consumers may be more concerned about the practicality and usefulness of goods, but in China, shopping is no longer just a transactionIt is more of a social activity, a way to show personality and taste.
Although the product line is extensive, there is a lack of products that can represent the individual needs of consumers. InIn the rapidly changing market environment, its product update speed is slow, it is difficult to catch up with the pace of the trend, and it is gradually out of touch with the taste of young consumers, losing the market opportunity.
Of course, the most talked-about thing is Biyide's marketing strategy。Its "low price guarantee" is not the same for a while, but the sustainability of this strategy is questionable in the long run.
Although the war can temporarily increase sales, it has hurt the brand image, making Biyide gradually change from a treasure land of "good quality and low price" in the minds of consumers to a synonym for "cheap goods". Eventually,The low profit margins and high competitive pressure caused by this marketing strategy became the last straw that crushed Biyide.
The closure of Biyide is not only the final chapter of a brand, but also a profound reflection on the entire discount store model. It tells every participant in the market that whether it is chasing low prices or building a brand, they need to have an accurate understanding of the market and long-term planning.
In this story, the curtain may have come to an end, but the challenges and lessons behind it are like a mirror that reflects the future direction of China's discount retail market。So, what lessons will the lessons of Biyide bring to their peers? How will other brands find new ways to survive in this volatile market?
The fall of Biyid was not an overnight nightmare, but an onset of chronic disease from the inside out. TableOn the face of it, this is a bleak picture of successive deficits on the financial statements, but digging deeper, the economic losses are only the tip of the iceberg. Behind the long-term losses, there are a series of chronic diseases such as imbalance in cost control, inefficient value chain and ambiguous market positioning.
Although the company's strategy attracted a large number of customers in the early stage, the continued low prices made its profit margins lower and lower, and it was difficult to cover the higher and higher operating costs. At the same time, competitors gradually reduced costs and improved efficiency through technological innovation and chain optimization, and finally gained the upper hand in the first battle.
The injection of capital was originally a shot in the arm, but it failed to get Biyide out of the predicament. In the ever-changing sea of the Chinese market, Biyide is like a ship lacking power, even if it has the sail of capital, it is difficult to resist the turbulent waves of market changes.
Its internal mechanism is rigid, its response to the market is slow, and the research and development of new products and the adjustment of marketing strategies are faltering. In this way, no matter how much capital there is, it will not be able to recover the loss of consumers' confidence in the brand, and it can only sink in the torrent of the market in the end.
As for "ignorant Chinese users", this is not just a simple cultural misunderstanding, it is a huge stumbling block behind the failure of Biyide. Consumer behaviour in the Chinese market is complex and volatile, with a demand for personalized and differentiated consumer experiences. Biyide's immutability and uniformity are inadequate in such a market environment.
It doesn't realize that Chinese consumers don't just care about the uniqueness and social recognition that the brand can bring to them. This fundamental misunderstanding caused Biyide to struggle in the Chinese market for a while, but ultimately lost to local brands that have a more accurate grasp of consumer psychology.
The failure of Biyide is a microcosm of foreign brands operating in China, and its collapse is not an isolated case, but a wake-up call for all foreign brands competing in the Chinese market. Its experience is like a textbook, detailing how a brand declines because it ignores the deep-seated needs of the market under the halo of capital.
While readers are curious about Yide's failures, they will also be interested in the question of how successful brands should work in the Chinese market. So, what can the experience of Biyide bring to other brands? After uncovering the underlying reasons for the collapse of BYD, do you have any thoughts on how other brands can survive in the Chinese market?
In your opinion, what is the key to the success of foreign brands in China? How should they adjust their strategies to withstand market storms? Or, what specific examples do you think could provide richer perspectives on the discussion, whether successful or unsuccessful?
We invite you to leave your insights and experiences. Each of your comments will not only enrich our discussions, but may also be a ray of light for other readers to gain insight into the market.